2015-16 Business Plan - calhfa.ca.gov · The following tables compare business plan goals with actual mid-year lending volume and revenue ... $0.99M . 146% : $1.84M ... exceeding
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Fiscal Year 2015-16 Mid-Year Business Plan and Operating Budget Update March 15, 2016
Good morning Chair Falk and members of the Board. I am Don Cavier, the Agency’s Chief Deputy Director and I am here this morning to provide a mid-year update on the fiscal year 2015-16 business plan and operating budget. In May 2015, with the challenges of the economic recession largely behind us, the Board adopted the 2015-16 business plan; a plan designed to reinvigorate lending activities and increase future income opportunities. Previous Agency business plans focused on stabilizing the Agency’s balance sheet, improving the Agency’s credit ratings and implementing a strategy to replace the US Treasury’s Temporary Credit Liquidity Program (TCLP). With many of these critical issues behind us, the Agency’s 2015-16 business plan is focused on the future of CalHFA, and our mid-year results and revised projections for the fiscal year show that we are headed in the right direction.
Fiscal Year 2015-16 Proposed Business Plan
• Reinvigorate lending activities • Grow the Agency’s balance sheet Goal #1 • Align lending activities with State
housing policy and increase operational efficiency Goal #2
• KYHC: Help prevent avoidable foreclosures by providing assistance to eligible homeowners Goal #3
Presenter
Presentation Notes
The current Business Plan consists of three primary goals: 1) to reinvigorating lending activities, grow the Agency’s balance sheet and increase future income; 2) Align lending activities with State housing policy and increase operational efficiency; and 3) Help prevent avoidable foreclosures by providing assistance to eligible homeowners who have financial hardship and/or significant negative equity through our Keep Your Home California program. Correspondingly, each business plan goal has key strategies identified for achieving these goals.
Goal #1 Reinvigorate lending activities. Grow the
Agency’s balance sheet
• Generate income via single family lending opportunities
• Key Action Items:
– $605 million in 1st mortgage loans – $75 million in downpayment
assistance loans (DPA) – Generate $5.75 million in new
revenues and $10.6 million in long term assets
– Add mortgage broker business – Complete new lender manual – Issue 1,300 Mortgage Credit
Certificates
Presenter
Presentation Notes
The first key strategy under Goal #1 was to generate income from Single Family Lending opportunities. For fiscal year 2015-16, single family lending targeted $605 million in 1st mortgage loan purchases and $75 million in down payment assistance (DPA) loans and targeted the generation of $5.75 million in new revenues.
Single Family Lending Single Family
Lending Volume Fiscal Year 2015-16
Goals Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
1st Mortgage (TBA) $605M $454M 75% $883M 146%
Downpayment Assistance (DPA)
$75M $22M 29% $40M 53%
Mortgage Credit Certificates (MCC)
$74M $58M 79% $121M 165%
TOTAL $754M $534M 71% $1.04B 139%
Single Family Revenue/Asset
Generation
Fiscal Year 2015-16 Goals
Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
1st Mortgage (TBA) $3.25M $3.01M 93% $5.30M 163%
Downpayment Assistance (DPA)
$2.40M $1.05M 44% $1.65M 69%
Mortgage Credit Certificates (MCC)
$0.10M $0.20M 198% $0.27M 265%
TOTAL $5.75M $4.26M 74% $7.22M 125%
Presenter
Presentation Notes
The following tables compare business plan goals with actual mid-year lending volume and revenue generation, and includes revised projections for the remainder of the fiscal year. At mid-year, 1st mortgage loan purchases were $454 million or 75% of business plan objectives, and the program expects to purchase in excess of $880 million of 1st mortgages by the end of the fiscal year. Down payment assistance loan volume is trailing our original projections, with mid-year results at $22 million or 29% of our original goal. The lower than expected DPA production is directly tied to our policy change that now requires CalHFA down payment assistance to be paired with CalHFA first mortgage loan products. This policy change has increased CalHFA first mortgage loan production and will likely improve overall market share over time. Similarly, revenue targets for the Single Family Lending programs are significantly outpacing our original business plan goals. At mid-year, actual revenues were $4.2 million or 74% of business plan goals, and based upon our latest projections, single family lending programs will generate approximately $7.2 million or 126% of our fiscal year goal.
Single Family Lending Single Family Unit
Production Fiscal Year 2015-16
Goals Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
1st Mortgage (TBA) 2,700 2,133 79% 3,480 129%
Downpayment Assistance (DPA)
7,000 3,175 45% 4,700 67%
Mortgage Credit Certificates (MCC)
1,300 1,032 79% 2,150 165%
TOTAL 11,000 6,340 58% 10,330 94%
Presenter
Presentation Notes
The following chart compares mid-year actual unit production to the fiscal year goal and provides a revised projection of unit production for the remainder of the fiscal year. With the exception of the down payment assistance program, unit production in both the 1st mortgage and MCC programs are on pace to surpass original business plan goals. As I mentioned in the last slide, the drop in down payment assistance loans is directly tied to the policy change that requires CalHFA down payment assistance to be tied to a CalHFA 1st mortgage. In previous years, roughly 60% of our down payment assistance loans were issued on a stand alone basis meaning that they were paired with another lenders 1st mortgage product. In addition to increasing CalHFA’s 1st mortgage loan production and extending funding availability for down payment assistance, the policy change allows CalHFA to ensure that DPA funds are being used in the best interest of the borrower and that the first mortgages meet GSE lending requirements.
Additional Mid-Year Highlights • Added the Zero Interest Program (ZIP) Extra DPA loan product to the FHA 1st
mortgage loan product • Completed the draft of the single family lenders manual to serve as a resource to
lenders working with CalHFA • Added mortgage broker business • Evaluating alternative master servicing opportunities with the intent to improve the
efficiency and profitability of our MBS delivery model • Pursuing activation of a seller servicer number with Fannie Mae and Freddie Mac • Implemented a policy change which requires that CalHFA down payment assistance
be matched with a CalHFA 1st mortgage
Presenter
Presentation Notes
Other mid-year highlights include: Adding the Zero Interest Program down payment assistance product to our FHA loans – Which provides up to 8.5% of the sales price or appraised value toward down payment and closing costs. Since adding the ZIP DPA to our FHA loan product, FHA loans have become 60% of our single family business in recent months. We completed the draft of the single family lenders manual to serve as a resource to lenders working with CalHFA. The manual was actually finalized and posted to our website last week. Added Mortgage Broker Business and the volume of broker loans is steadily increasing. Finally, given the increases in single family loan volume we are continuously evaluating ways to improve the efficiency and profitability of our MBS delivery model, including the exploration of alternative master servicing arrangements and activation of our seller servicer number with Fannie Mae and Freddie Mac.
Goal #1 Reinvigorate lending activities. Grow the
Agency’s balance sheet
• Generate income via multifamily lending opportunities
• Key Action Items:
– $100 million in multifamily lending – $100 million in multifamily conduit
financings – Generate $6.5 million in new
revenue and long term assets – Increase internal capacity via
training and program development – Create portfolio preservation
strategy – Adopt policies for Earned Surplus
Funds
Presenter
Presentation Notes
The second key strategy under Goal #1 was to generate income from Multifamily Lending opportunities. Multifamily lending targeted $100 million in 1st mortgage loan origination, $100 million in Conduit Issuance and $30 million in Mental Health Services Act lending with a combined revenue and asset generation target of $6.5 million for fiscal year 2015-16.
Multifamily Lending Multifamily Lending
Volume Fiscal Year 2015-16
Goals Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
Multifamily Lending $100M $74M 74% $84M 84%
Mental Health Services Act (MHSA)
$30M $14M 47% $32M 107%
Conduit Lending $100M $146M 146% $305M 305%
TOTAL $230M $234M 102% $421M 183%
Multifamily Revenue/Asset
Generation
Fiscal Year 2015-16 Goals
Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
Multifamily Lending $4.68M $2.70M 58% $2.77M 59%
Mental Health Services Act (MHSA)
$1.14M $0.44M 38% $1.22M 107%
Conduit Lending $0.68M $0.99M 146% $1.84M 273%
TOTAL $6.50M $4.13M 63% $5.83M 90%
Presenter
Presentation Notes
At mid-year, the multifamily lending program closed five 1st mortgage loans for $74 million and ten MHSA loans for $14 million. Combined, the two programs expect to close $116 million by the end of the fiscal year including our first Multifamily transaction using the new HUD/FFB Risk Share program, Palos Verdes. Similarly, the multifamily conduit issuance program is doing better than expected closing nine transactions for $146 million, exceeding the annual business plan goal at the mid-year point. The Agency expects to close over $300 million in conduit issuances by the end of the fiscal year. At the end of December, multifamily lending programs had combined for $4.1 million or 63% of the revenue generation target for the fiscal year. However, we expect to fall slightly short of our fiscal year goal of $6.5 million given that most of our remaining pipeline projects are expected to close just after end of the fiscal year.
Multifamily Lending Multifamily Unit
Production Fiscal Year 2015-16
Goals Mid-Year Actuals
% of Goal (Completed)
Fiscal Year 2015-16 Revised Projection
% Goal (Projected)
Multifamily Lending 800 585 73% 723 90%
MHSA 200 92 46% 249 125%
Conduit Lending 500 736 147% 1,298 260%
TOTAL 1,500 1,413 94% 2,270 151%
Presenter
Presentation Notes
The next chart reflects the multifamily unit production at mid-year compared with our original goals, and provides projections through the end of the fiscal year. From a unit production stand point, the increase in our conduit issuance financing has provided a boost to unit production and we are projecting unit volume to be within 90% of goal for our Multifamily lending products and exceed goal for the MHSA and Conduit programs.
Additional Mid-Year Highlights
• Adopted policies regarding the use of surplus funds for gap financing with CalHFA multifamily lending programs
• Updated the Agency’s underwriting and loan approval process • Drafted a preservation strategy for CalHFA multifamily portfolio projects • Completed a comprehensive training program designed to refresh staff’s
underwriting skills and provide current perspectives regarding current market conditions in the multifamily space
Presenter
Presentation Notes
Other mid-year highlights include the adoption of a policy for the use of CalHFA surplus funds for gap financing with CalHFA multifamily lending programs. We updated the Agency’s underwriting and loan approval processes and completed a comprehensive training program for multifamily staff designed to refresh underwriting skills and provide updates on current market conditions in the multifamily space.
Goal #1 Reinvigorate lending activities. Grow the
Agency’s balance sheet
• Strengthen capital reserves and improve liquidity position
• Key Action Items:
– Eliminate Temporary Credit Liquidity Program (TCLP)
– Develop internal capacity to hedge MBS sales to increase fee income
– Refine tools to manage allocation of capital and risk
Presenter
Presentation Notes
Another important strategy for Goal #1 was to strengthen capital reserves and improve liquidity of the Agency. Accordingly a key element in the effort to strengthen the financial position of CalHFA was the replacement of the Temporary Credit Liquidity Program (TCLP) credit facility provided to CalHFA by the US Treasury during the financial crisis. The TCLP credit support was set to expire on December 23, 2015 and CalHFA had committed to fully retiring the obligation prior to that date.
Mid-Year Highlights
• Replaced Temporary Credit and Liquidity Program (TCLP) credit facility five months ahead of schedule
• Standard & Poor’s (S&P) upgraded the Home Mortgage Revenue Bond (HMRB) indenture from ‘A-‘ to ‘A’ with a stable outlook and Moody’s affirmed its ‘A3’ rating for the same bonds
• Several months later, S&P announced an upgrade of CalHFA’s overall
Issuer Credit rating from A- to A with positive outlook
• Moody’s upgraded the HMRB indenture and the CalHFA overall Issuer Credit ratings from A3 to A2 with stable outlook
Presenter
Presentation Notes
Through the tireless efforts of our finance department, CalHFA refinanced variable rate bonds with fixed rate bonds and strategically used cash to reduce variable rate bond exposure. All of which contributed to the willingness of private banks to provide replacement letters of credit to retire the remaining $510 million of TCLP on July 22, 2015. The various debt restructurings and the replacement of the TCLP strengthened our balance sheet and resulted in several credit rating upgrades during the first half of the fiscal year and most recently in February 2016. In July 2015, Standard & Poor’s (S&P) upgraded the Home Mortgage Revenue Bond (HMRB) indenture from ‘A-‘ to ‘A’ with a stable outlook. At the same time, Moody’s affirmed its ‘A3’ rating for the same bonds. Several months later, S&P announced an upgrade of CalHFA’s overall Issuer Credit rating from A- to A with positive outlook, citing two consecutive years of net operating profitability, upward ratio trends, improved asset quality and equity levels. In February of 2016, Moody’s upgraded the HMRB indenture and the CalHFA overall Issuer Credit ratings from A3 to A2 with stable outlook.
The Next two Charts illustrate the historical trends surrounding CalHFA’s credit ratings for our General Obligations, the Multifamily Bond Indenture (MF3) and the Single Family Bond Indenture (HMRB). As you can see, since the low of the financial crisis, CalHFA has begun a steady climb to restore our credit ratings.
CalHFA Moody’s Ratings Moody’s Rating
2008 2009 2010 2011 2012 2013 2014 2015 2016
Aa1 Aa2 HMRB
Aa3 GO MF3
HMRB
A1 GO MF3
MF3 MF3 MF3
A2 GO MF3
GO HMRB
A3 HMRB GO MF3
GO MF3
GO MF3
GO GO HMRB
Baa1 Baa2 HMRB HMRB HMRB HMRB
Presenter
Presentation Notes
While S&P has been quicker to provide upgrades, Moody’s has been historically quicker to downgrade and slower to upgrade, but slow or not, the upgrades have come.
Goal #2 Align lending activities with State housing policy and increase operational efficiency
• Complete
organizational assessment and implement recommendations that increase operational efficiencies
• Key Action Items:
– Consolidate all Sacramento staff at 500 Capitol Mall
– Eliminate unneeded vacant positions
– Finalize organizational structure and functional roles
– Continue to refine budget and business plan development
Presenter
Presentation Notes
With respect to Goal #2 , the first key strategy was to complete the CalHFA organizational assessment and implement recommendations that increase operational efficiencies.
Mid-Year Highlights • Consolidated the West Sacramento office into the Agency’s headquarters
building at 500 Capitol Mall
• Sublet an unused portion of the Culver City Office • Consolidating the Multifamily Lending division and the Asset Management
division
• Appointed a new Director of Multifamily Programs
• Eliminated 12.5 permanent positions determined to be unneeded
• Implemented of a comprehensive training program for multifamily staff
• Began marketing our conduit issuance loan program
• Merging the Portfolio Management division with Single Family Lending
Presenter
Presentation Notes
The Agency completed the organizational assessment in July 2015 and has implemented many of the recommendations outlined in the report. Some highlights from the first half of the year include: 1) Consolidating the loan servicing staff from the West Sacramento office into the Agency’s headquarters building at 500 Capitol Mall and letting the West Sacramento lease expire which saves $30K this year and $343K per year going forward; 2) Subletting 3,500 sqft. of unused space in the Culver City Office generating 42K per year; 3) Consolidating the Multifamily Lending division and the Asset Management division under a single management structure and appointing a new Director of Multifamily Programs; 4) Eliminating 12.5 permanent positions determined to be unneeded; 5) Implementing a comprehensive training program for multifamily staff; 6) proactively marketing our multifamily conduit issuance loan program; 7) Merging the Portfolio Management division with Single Family Lending as REO and loan modification activity has been replaced with increases in single family lending.
Goal #2 Align lending activities with State housing policy and increase operational efficiency
• Develop long-term
strategies to monitor and mitigate enterprise risks
• Key Action Items:
– Formalize strategies to integrate enterprise risk management efforts into the CalHFA business process
– Develop a plan to review and improve quality assurance, risk management and internal controls across the Agency
Presenter
Presentation Notes
Another key strategy of the business plan was to develop a long-term strategy to monitor and mitigate enterprise risks.
Mid-Year Highlights
• The Agency is actively participating in the State Leadership Accountability Act risk assessment and reporting process
• Agency is moving forward with recruitment for the vacant Finance Risk Manager position
• Developing a Quality Control department for single family lending
Presenter
Presentation Notes
At mid year, we have made limited progress in this area. However, the Agency is actively participating in the State Leadership Accountability Act risk assessment and reporting process. Under the requirements of this Act, CalHFA must continuously assess the internal and external risks impacting operations, reporting and compliance. As risks are identified, the mitigating control must be identified or a corrective action plan must be developed and implemented. Our latest report was posted to our website last week per State requirements. Further, the Agency is moving forward with recruitment for the vacant Financial Risk Manager position and is developing a Quality Control department for single family lending to meet the requirements for receipt of our seller/servicer numbers form Fannie Mae and Freddie Mac. We are also considering the creation of a new position of Director of Enterprise Risk Management and Compliance to over see all enterprise risks and compliance efforts of the Agency.
Goal #2 Align lending activities with State housing policy and increase operational efficiency
• Agency-wide IT
integration of data collection, flow and reporting
• Key Action Items:
– Develop IT governance structure and strategic plan that aligns IT priorities with business plan goals
– Develop records management policy and update records retention schedule
– Identify and train IT liaisons in all business units
– Expand and improve electronic loan file submission
Presenter
Presentation Notes
Another business plan strategy was to ensure that IT projects and planning efforts focus on the efficient flow of data between systems and departments and promote timely and accurate reporting.
Mid-Year Highlights
• Established an IT governance committee • Completed the records management and retention policy • Refined the use and function of the Enterprise Content Management system • Automated the process by which single family lenders submit loan
documents for approval and purchase
Presenter
Presentation Notes
To this end, the Agency has established an IT governance committee to ensure that IT planning and activities are supporting business plan objectives. After several meetings the committee has determined that the scope and role of the committee should be expanded beyond IT projects and incorporate sponsorship of the key initiatives of the business plan and provide regular progress reports to the Board. It is our intention to provide the Board with reports on the progress of key business plan strategies at least quarterly if not more frequently. A comprehensive records management and retention policy has been completed, and the function and use of the Enterprise Content Management system has been refined to better meet the ongoing business needs of CalHFA. Finally, IT has completed an important upgrade to our Mortgage Access System that has automated the process by which single family lenders submit loan documents for approval and purchase by CalHFA via a web portal.
Goal #2 Align lending activities with State housing policy and increase operational efficiency
• Enhance program delivery of affordable housing through continued collaboration with HCD and other partners
• Key Action Items:
– In collaboration with DHCS and HCD determine next phase of MHSA program
– Assess goals, performance measures and viability of HOME TBRA and HUD 811 programs
– Continue to explore integrated gap financing efforts amongst State affordable housing entities
– Collaborate with HCD and CalVet to expand veteran housing opportunities
Presenter
Presentation Notes
Another key strategy is to enhance delivery of affordable housing through collaboration with HCD and other partners.
Mid-Year Highlights MHSA/SNHP • Surveyed stakeholders across the State regarding their interest in
participating in a similar program to be administered by CalHFA, the Special Needs Housing Program (SNHP).
HUD Section 811 PRA • CalHFA is currently administering $3.3 million on six projects and 96 units of
the Round 1 award. • The state partnership released a NOFA in early February 2016 for the
Round 2 award.
Small Loan Program • CalHFA is developing a small loan program for loans under $3.5 million. Workforce Housing Loan Program • CalHFA is working to develop a loan program for affordable rental housing
serving tenants earning above 60% Area Median Income (AMI).
Presenter
Presentation Notes
MHSA Since the interagency agreement with CalHFA and DHCS to administer the Mental Health Services Act program expiring on May 30, 2016, Staff has surveyed stakeholders across the State regarding their interest in participating in a similar program to be administered by CalHFA. The response was favorable with several counties pledging over $30 million of new money or unallocated MHSA funds. Staff is finalizing documents for the close-out of the original MHSA program and the introduction of the new program. HUD Section 811 Project Rental Assistance – CalHFA is administering the HUD Section 811 program in partnership with DHCS, HCD, DDS, and TCAC. The program provides rental subsidies to provide permanent supportive housing for individuals with disabilities. The goal of the program is to remove these individuals from long-term care facilities and allow them to live more independently. HUD has awarded two rounds of funding across the country. California received $11.9 million in Round 1 for a state-wide program and $12 million in Round 2 for Los Angeles County. CalHFA is currently administering $3.3 million on six projects and 96 units of the Round 1 award. The state partnership released a NOFA in early February 2016 for the Round 2 award. The funds will begin being disbursed in FY 2016/17. Small Loan Program – CalHFA is developing a small loan program for loans under $3.5 million. This program will serve an underserved market by providing loans with competitive rates and terms for smaller multifamily developments. Workforce Housing Loan Program – CalHFA is working to develop a loan program for affordable rental housing serving tenants earning above 60% Area Median Income (AMI). Federal Low Income Housing Tax Credits serve as the major subsidy for affordable rental housing, but only provide benefits if units are restricted at 60% AMI or below. In many high-cost areas across California, market rents are in excess of 100% AMI. The intent of the program is to serve the “missing middle,” those earning between 60% AMI and market rents through favorable loan terms and shallow subsidies provided by CalHFA.
Goal #3 Help prevent avoidable foreclosures by
providing assistance to eligible homeowners who have financial hardship and/or significant
negative equity
• Maximize use of KYHC program funds
• Key Action Items:
– Submit program changes as needed to US Treasury to increase eligibility
– Increase marketing efforts – Collaborate with other private and
public entities to maximize and leverage potential foreclosure prevention resources
– Measure program outcomes and assess barriers to eligibility
Presenter
Presentation Notes
For Goal #3 the strategy was simple. Maximize the use of the Keep Your Home California funds to help prevent avoidable foreclosures.
Mid-Year Highlights
• 56,000 homeowners have received assistance from the KYHC program since inception
• As of December 31, 2015, a total of 5,672 eligible homeowners were in the
active pipeline, pending final benefit determination, for one of the five KYHC programs
Presenter
Presentation Notes
To accomplish this, CalHFA formed a nonprofit corporation, CalHFA Mortgage Assistance Corporation dba Keep Your Home California, to administer California’s $1.9 billion allocation of the US Treasury’s Hardest Hit Funds. The funds administered are intended to help preventable foreclosures due to financial hardship and/or significant negative equity. At mid-year, the program had provided $1.2 billion in assistance to over 56,000 homeowners and there are 5,672 eligible homeowners in the active pipeline, pending final benefit determination. On February 19th, the US Treasury announced and additional $2 billion investment in the Hardest Hit Funds, with California allocated $213.5 million in additional funding.
FY 2015-16 Mid-Year Business Plan Update
Questions?
Presenter
Presentation Notes
Are there any questions before I discuss the Mid-year budget update?
Mid-Year Update on the
FY 2015-16 Operating Budget
Mar 15, 2016
Presenter
Presentation Notes
In May 2015, the Board approved the FY 2015-16 Operating Budget in conjunction with the adoption of the Annual Business Plan. The approved operating budget includes a resource budget of $62.5 million and expenditure budget of $42.8 million and includes 285.8 positions. At December 31, 2015, resources are $4.8 million or 15% ahead of mid-year projections and operating expenses are $2.3 million or 11% below mid-year projections. The flowing table provides a breakdown of our mid-year results as well was revised projections for remainder of the fiscal year.
NET SURPLUS/(EXPENDITURE) 19,810$ 9,905$ 17,073$ 7,168$ 72.4% 34,228$
Interest (mortgages/securities/cash)
TOTALS
OPERATING BUDGET
TOTALS
CALIFORNIA HOUSING FINANCE AGENCYMID-YEAR 2015-16 BUDGET UPDATE
(DOLLARS IN THOUSANDS)
RESOURCES
Presenter
Presentation Notes
Resources are trending higher than originally anticipated due to increased servicing income, the release of earthquake insurance reserves, accelerated loan repayments, increased lending fees and the transfer of loans from the Housing Program Bond Indenture. During the first half of the fiscal year, CalHFA’s Single Family Loan Servicing Division reacquired the servicing rights for 1,017 CalHFA first mortgages previously serviced by third party mortgage servicers which resulted in increased servicing fees. The release of the insurance reserves and the increase in loan repayments are the direct result of the higher than expected prepayment speed of the loan portfolio. The budget conservatively estimated prepayment speeds of 6% annually; however, the actual rate of prepayment was closer to 18%. Similarly, fee income has outpaced expectations due to the increases in single family lending activity we previously discussed. Finally, another contributing factor to the increase in resources was the redemption of all bonds under the HPB indenture and the transfer of the remaining assets from the indenture to the operating fund. The loan repayments received from those transferred assets resulted in an additional $1.4 million of unanticipated resources.
Questions?
Presenter
Presentation Notes
This concludes my presentation, I am available for any questions the Board may have.
